Starting Your Business/Keeping Tax Records
What are Business Expenses
Business Interest
Interest is the amount charged for the
use of borrowed money. You can generally deduct all interest
you pay or accrue during the tax year on debts related to
your trade or business. To take the deduction, you must
have a true obligation to pay a fixed or determinable sum
of money.
No deduction is allowed for interest
paid or accrued on personal loans. If a loan is part business
and part personal, you must divide the interest between
the personal part and the business part.
Interest
You Can Deduct
Interest
You Cannot Deduct
When
to Deduct Interest
Important References
Publication
911
Direct Sellers
Publication
535
Business Expenses
Form
1040 Schedule C Profit or Loss
from Business